Can a Contract Management Software Protect Important Data?

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Contracts are essential legal documents that, when in the wrong hands, could cause significant trouble. That’s why it’s crucial to protect your company’s contracts from potential security breaches. One effective way to do so is through the implementation of a contract management system.

Companies often use contract management software to create and renew contracts. You can also use this software for contract negotiations, data gathering, and signing. But many seem to question the security of contract management systems.

While it is understandable to be wary of software created to house confidential information, there’s really no need to worry about security breaches as long as you choose a reliable system. In fact, contract management systems even provide additional security to your contracts.

Data Encryption

Passing contract data via email is a common practice in many companies. However, this is not a secure way to transfer contract data. Email attachments can easily be infiltrated by malicious software, and this confidential information could get into the hands of hackers.

By using contract management software, you have the ability to encrypt data to protect it from unauthorized users. Data encryption is applied both at rest and in transit.

When we say data at rest, we are referring to the data stored inside the contract management system. On the other hand, data in transit refers to the data coming from or sent to external sources. 

Contract management software also encrypts intake forms. These forms are typically used to request the creation of a contract or submit an existing contract. By encrypting these forms, you are ensuring the security of the data and minimizing mistakes.

Centralized Contracts

Some businesses may store their existing contracts in shared folders. While convenient for access and viewing, shared folders pose a risk for security breaches. 

But with a contract management system, you can centralize your contracts. All the contracts would be in the same secure place that only authorized individuals can access. And the great thing about it is that it also allows authorized users to access documents securely at any time on any device. It brings together convenience and security for added efficiency.

E-Signature Capabilities

Hunting down signatures can be such a hassle. When you rely on paper-based signatures, you have to locate the individuals who need to sign the document, which can be time-consuming. Luckily, contract management systems allow for a more efficient way to get approvals.

Thanks to its e-signature capabilities, contract management software can give users a secure and quick way to sign contracts. E-signatures are legally binding and can help with audit trails. They also carry digital records of the people, the date and time, and where the contract was signed to ensure authentication.

In Summary

A contract management system isn’t just a convenient way to organize your contracts. It is also quite secure. By encrypting the data at rest and in transit, you can protect the contract data from getting into the hands of the wrong individuals. It also centralizes your contracts, giving authorized users secure access to any document from any device at any time. And with its e-signature capabilities, you can get contracts signed in a more secure and efficient manner.

Keep your contracts safe with Anapact, the best contract management software built for small- and mid-sized businesses. With Anapact, you can reduce risk, ensure compliance, and make the most of your contract documents. We provide simple and scalable pricing based on contracts and not features. Get a demo now!

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- About the Author

Picture of Louis Balla
Louis Balla
Louis is the Co-Founder of Anapact and partner at Nuage, a top rated ERP consulting firm based in Venice Beach, California.